TRB.L WACC - Weighted Average Cost of Capital
The WACC of Tribal Group PLC (TRB.L) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.2% | 7.25% |
| Tax rate | 19.6% - 22.2% | 20.9% |
| Cost of debt | 5.1% - 8.6% | 6.85% |
| WACC | 6.0% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.38 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.2% |
| Tax rate | 19.6% | 22.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 5.1% | 8.6% |
| After-tax WACC | 6.0% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TRB.L | Tribal Group PLC | 0.11 | 0.91 | 0.84 |
| ACAD.ST | AcadeMedia AB | 1.61 | 0.43 | 0.19 |
| ATVEXA B.ST | Atvexa AB | 2.43 | 0.85 | 0.29 |
| MLVN.L | Malvern International PLC | 0.92 | 0.73 | 0.42 |
| WEY.L | Wey Education PLC | 0 | -0.48 | -0.48 |
| ASPU | Aspen Group Inc | 2.45 | 0.32 | 0.11 |
| HLG | Hailiang Education Group Inc | 0.02 | -0.01 | -0.01 |
| NEW | Puxin Ltd | 11.42 | 1.68 | 0.17 |
| ONE | OneSmart International Education Group Ltd | 34.06 | 0.09 | 0 |
| TIGE | Tigrent Inc | 619.02 | -0.03 | 0 |
| Low | High | |
| Unlevered beta | 0.07 | 0.17 |
| Relevered beta | 0.07 | 0.19 |
| Adjusted relevered beta | 0.38 | 0.46 |
TRB.L's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for TRB.L:
cost_of_equity (7.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.